I'm encountering a weird glitch that I cannot figure out. Anytime I paste text (regardless of source) a new color swatch is added to my library. The text is never formatted to this color and always takes on the color of the default paragraph style.

Hi Jon: To clarify, you set up your system defaults in InDesign so that all new documents already have your brand colors in the Swatches panel? If your brand colors are already populated in new docs, what color is showing up?

Maybe a picture will explain better... My of my primary swatches is called "cranberry" and by pasting in unformatted text, a new swatch called "cranberry 2" gets added. This process repeats itself upon pasting any other text (i.e. cranberry 3, cranberry 4, etc.)

Sorry, that was in the screen shot. Color can be assigned to things beyond the type. Shading, rules. If you edit Basic Paragraph (right click or double click) does anything in the document show Cranberry as defined?

Hmm, so following the directions I've found the folder and see that there is a "defaults" file which I renamed, but do not see a "saved data" file as your link suggests? By renaming the "defaults" file to old and reopening indesign a new defaults file is created. Unfortunately the glitch still exists and I'm guessing it has something to do with that saved data file.